FORT WORTH, TEXAS / ATLANTA, GEORGIA – Airlines are feeling the massive impact of the coronavirus worldwide, especially in Europe and Asia. In Europe several airlines – like British Airways – even suspended all flights today to and from Italy, while the COVID-19 virus also has its impact on the U.S. airline industry, as several airlines – including American and Delta, 2 of the nation’s largest – announced deep cuts in their international and domestic schedules on Tuesday, CNN reports.
American – the world’s largest airline – said it would cut its international capacity this Summer by 10%, compared to the current schedule. The airline would also cut as well as 7.5% drop in domestic flights in April.
Delta Air Lines
Delta said it will cut its international flights between 20% – 25% and trim domestic flights by 10% – 15%. “We are prepared to do more as the situation evolves,” Delta CEO Ed Bastian said.
According to Delta, the airline would make additional moves in response to decreased travel demand due to the corona virus. Delta is aiming to save $3 billion, including a suspension of share repurchases, a deferral of contribution to the company’s pension plans, a cut in capital spending and a deferral of maintenance spending on aircraft it expects to park.
Delta also said it would institute a hiring freeze and set up a way for employees to sign up for unpaid leave. Delta also said it no longer stood by its previous earnings outlook for 2020.“Should the environment get worse, we can go deeper,” Bastian added.